USD/JPY Signal Update
Yesterday’s signals were not triggered as there was no bearish price action at 106.64 after the New York open.
Today’s USD/JPY Signals
Risk 0.75%
Trades may only be entered between 8am New York times to 5pm Tokyo time over the next 48 hours.
Short Trade 1
Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.20.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.63 or 106.48.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
USD/JPY Analysis
I wrote yesterday that breaking up above 106.64 that is sustained would be a very bullish sign, signalling that the long-term downwards trend has probably come to an end.
This is what happened, and although the price is falling now having reached very close to the key psychological level of 107.50, that chart below shows the price is well within an ascending patter with plenty of support levels below.
Bearish reversals are always possible but I do not see the conditions yet for a big change in sentiment. It might be that after such a long trip up, the price finds it harder to rise significantly for a while.
Concerning the JPY, there is nothing due. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.